Abstract
Post-socialist governments are looking for the best options to implement a fully funded pension system along with a pay-as-you-earn pension scheme. The paper aims to establish the impact of pension assets on economic growth using the example of post-socialist countries (Hungary, the Slovak Republic, Slovenia, Poland, and the Czech Republic). The use of methods of correlation and regression analysis allows determining the type of dependence (linear, exponential, gradual, and logarithmic) of countries’ economic growth indicators on pension assets and patterns for their investment (deposits, securities of public and private sectors). The obtained economic growth indicators of the studied post-socialist countries show a strong logarithmic dependence on the size of pension assets: Gross fixed capital formation depends on changes in the pension asset amount by 76.44% and GDP by 71.01%. The economic growth of the studied post-socialist countries is most significantly influenced by pension assets invested in deposits. Investing pension savings in public and private sector securities is less effective. The proved provisions determine the expediency of moving from the predominant pay-as-you-earn pension scheme to the predominant fully funded pension system for Ukraine. Such a transformation requires a stable and efficient construction of the country’s banking system, a developed policy for reforming the pension system while considering the criteria of the internal demographic, social, and financial situation.
Highlights
Governments around the world are still facing the challenge of determining the optimal retirement age, ensuring a sufficient amount of pension benefits, and appropriate funding mechanisms and sources
Dicators based on the growth of pension assets, the correlation and regression equations were dif- To determine the change rate for Gross fixed capferentiated, which most accurately describe the ital formation influenced by changes in pension dependence
Revealing the impact of investment patterns for function was differentiated as follows: pension assets on the resulting indicators included the construction of multiple regression equations dGFCF =
Summary
Governments around the world are still facing the challenge of determining the optimal retirement age, ensuring a sufficient amount of pension benefits, and appropriate funding mechanisms and sources. Approaches to solving these problems differ from country to country, namely, taking measures to increase or decrease the retirement age, transforming the architectures of pension systems, and regulating the amounts of contributions and payments of pension funds. Such measures are often based on social, demographic criteria and the financial capacity of states.
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